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Strategic Planning and Performance of Nigerian SMEs: The Moderating Role of Entrepreneurial Characteristics

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  • Makinde Olubisi G
  • Asikhia Olalekan U

Abstract

Studies that considered the moderating effect of entrepreneurial characteristics on the relationship between strategic planning and performance of SMEs are few. This research is aimed at investigating the relationship between strategic planning and SME performance while also considering the moderating effect of entrepreneurial characteristics on the relationship between these two variables. The study employed the use of survey research design using the owners/managers of 4,535 SMEs registered with SMEDAN as the target population. Correlation analysis was used to establish the extent of the relationship between strategic planning and performance of SMEs while hierarchical regression analysis was used to establish the moderating effect of entrepreneur characteristics on the relationship. Findings showed that there exist a statistically significant positive relationship between strategic planning and performance of SMEs in Lagos State, the study also indicated that entrepreneurial characteristics significantly moderates the relationship between strategic planning and performance of SMEs. The study concluded that entrepreneurial characteristics being exhibited influenced the performance of the business. Policy implications and recommendations were made.

Suggested Citation

  • Makinde Olubisi G & Asikhia Olalekan U, 2018. "Strategic Planning and Performance of Nigerian SMEs: The Moderating Role of Entrepreneurial Characteristics," Journal of Economics and Behavioral Studies, AMH International, vol. 9(6), pages 98-108.
    • Handle: RePEc:rnd:arjebs:v:9:y:2018:i:6:p:98-108
    DOI: 10.22610/jebs.v9i6(J).2008
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    References listed on IDEAS

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    2. Roslan Abdul Aziz & Mohd Hussin Abdullah & Anas Tajudin, 2013. "The Effect of Leadership Styles on the Business Performance of SMEs in Malaysia," International Journal of Economics, Business and Management Studies, Online Science Publishing, vol. 2(2), pages 45-52.
    3. Zachary B. Awino, 2013. "Strategic Planning and Competitive Advantage of ICT Small and Medium Enterprises in Kenya," Business and Management Horizons, Macrothink Institute, vol. 1(1), pages 191-204, June.
    4. Muritala Taiwo A & Awolaja Ayodeji M & Bako Yusuf A, 2012. "Small and Medium Enterprises and Economic Growth in Nigeria," Acta Universitatis Danubius. OEconomica, Danubius University of Galati, issue 3(3), pages 45-53, June.
    5. Robert M. Grant, 2003. "Strategic planning in a turbulent environment: evidence from the oil majors," Strategic Management Journal, Wiley Blackwell, vol. 24(6), pages 491-517, June.
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